Costco, Verizon, and Kroger rise as investors rotate from chip stocks into defensive dividend plays

Industry
โดย The Motley Fool·Read original
Summary · why it matters

Shares of Costco Wholesale, Verizon, and Kroger each gained roughly 2% on Tuesday as traders sold volatile semiconductor stocks and sought stability in defensive dividend payers. The rotation comes amid intensifying competition from Chinese chipmakers and growing doubts that AI spending will deliver promised returns, punishing companies like Alphabet for rising capital expenditures and threatening once-dominant tech leaders such as ASML Holding. Costco is up 13% in 2026, Verizon has gained 19% with free cash flow up 16% in the first half of the year, and Kroger is down 6% year-to-date, trading at about 11 times forward earnings as it cuts prices to attract at-home diners.

Impact on stocks 5

Consumer Staples▲ · 2 stocks
Costco Wholesale Corp
COST
▲ Positiverelevance

Benefiting from rotation into defensive dividend stocks, but no company-specific news.

Kroger Company
KR
▲ Positiverelevance

Benefiting from rotation into defensive dividend stocks, but no company-specific news.

Artificial Intelligence▼ · 1 stocks
Alphabet Inc Class C
GOOG
▼ NegativeCapitalrelevance

Punished for rising capital expenditures amid doubts about AI spending returns.

Semiconductors▼ · 1 stocks
ASML Holding N.V.
ASML
▼ NegativeCompetitionrelevance

Threatened by intensifying competition from Chinese chipmakers.

Cloud & Digital Infrastructure▲ · 1 stocks
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